Is there a tax credit for buying hybrid vehicles?

Question

I was told that if I buy a hybrid automobile, I can do something on my income tax return this year? Does anyone know if such a thing exists and is it does, what is it?

Answer 1

There is indeed a tax credit for having purchased a hybrid vehicle. I have attached the IRS link to the page that shows what the credits are for which vehicles.
The credit is only available for a limited time (per number of cars that are sold), and fluctuates depending on what time of year your purchased the vehicle. Check with a tax professional who has studied the topic if you're going to claim the credit and are unfamiliar with the rules.

Answer 2

You really need to go to the IRS.gov website and look at which vehicles are available and how much the POTENTIAL credit is. (Some Toyota/Lexus dealerships are misleading customers into thinking there is still a credit available for their hybrids; Honda just hit the 60K limit.)

TWO YEARS ago there was a $2000 "credit" (actually a deduction), but that was replaced by the credit.

The credit is tricky. First you do your taxes. Then you do the AMT form. If you don't hit AMT and you still owe taxes, then you may get some or all of the credit.

Answer 3

there might want to correctly be a State tax credit on your state. The Federal tax credit ran out for the Prius years in the past. because the third perfect promoting motor vehicle so some distance this twelve months, that hasn't looked as if it would have stopped each person from paying for one.

Answer 4

It has existed for several years. The amount depends on the make and model. For several types of hybrids, the credit has expired so is no longer in effect. So check before you buy.

Answer 5

There is a credit of up to $2,000. However, it's no longer available on some makes. Your dealer or tax advisor should be able to explain it to you.